Common use of REVERSE FACTORING AGREEMENT Clause in Contracts

REVERSE FACTORING AGREEMENT. The Board hereby announces that on 29 May 2020, Yueda Commercial Factoring, an indirect wholly owned subsidiary of the Company, entered into Reverse Factoring Agreement, pursuant to which Yueda Commercial Factoring agreed to provide Accounts Receivable Services and granted reverse revolving factoring loan credit limits to Sheyang and Sheyang is entitled to apply for accounts receivables transfer and factoring services. If Sheyang needs financing facility from Yueda Commercial Factoring, it will make an application for factoring services. If the credit assessment is to the satisfaction of Yueda Commercial Factoring, Yueda Commercial Factoring will grant the factoring loan within the reverse revolving credit limit. The principal terms of the Reverse Factoring Agreement entered into between the Company and Sheyang are set out below:

REVERSE FACTORING AGREEMENT. The Board hereby announces that on 29 May 202027 March 2023, Yueda Commercial Factoring, an indirect wholly owned subsidiary of the Company, entered into Reverse Factoring Agreement, pursuant to which Yueda Commercial Factoring agreed to provide Accounts Receivable Services and granted reverse revolving factoring loan financing credit limits to Sheyang ▇▇▇▇▇▇▇ ▇▇▇▇▇▇▇▇▇▇▇ and Sheyang ▇▇▇▇▇▇▇ ▇▇▇▇▇▇▇▇▇▇▇ is entitled to apply for accounts receivables transfer and factoring services. If Sheyang ▇▇▇▇▇▇▇ ▇▇▇▇▇▇▇▇▇▇▇ needs financing facility from Yueda Commercial Factoring, it will make an application for factoring services. If the credit assessment is to the satisfaction of Yueda Commercial Factoring, Yueda Commercial Factoring will grant the factoring loan financing within the reverse revolving credit limit. The principal terms of the Reverse Factoring Agreement entered into between the Company and Sheyang Jiangsu Xinqingyang are set out below:: Date : 27 March 2023